Samsung and Apple Still Dominate the Smartphone Market, Says IDC

Research firm IDC reports that the worldwide mobile phone market grew 1.9% year over year in Q4 2012, boosted by strong holiday smartphone sales, although for the full year, the global market for mobile phones was essentially flat. IDC also reports that the high-growth smartphone market, was dominated by Samsung and Apple but there remain plenty of opportunities for challengers.

Kevin Restivo, senior research analyst with IDC thought that that vendors with unique market advantages, such as lower-cost devices, can rapidly gain market share, especially in emerging markets. A good example is Huawei, which overtook LG as a Top five vendor in the overall mobile phone market and passed HTC to become a Top five smartphone vendor.

The fact that Huawei and ZTE now find themselves among the Top 5 smartphone vendors marks a significant shift for the global market ….Both companies have grown volumes by focusing on the mass market, but in recent quarters they have turned their attention toward higher-end devices. In addition, both companies have pushed the envelope in terms of industrial design with larger displays and smaller form factors, as well as innovative applications and experiences.

Strong Demand for Smartphones and Heated Vendor Competition Characterize the Worldwide Mobile Phone Market at the End of 2012, IDC Says

FRAMINGHAM, Mass.–BUSINESS WIRE–The worldwide mobile phone market grew 1.9% year over year in the fourth
quarter of 2012 (4Q12), as strong holiday smartphone sales raised
shipments of these devices to levels nearly equal to those of feature
phones. According to the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker, vendors shipped a total of 482.5
million mobile phones in 4Q12 compared to 473.4 million units in the
fourth quarter of 2011. For the full year, the global market for mobile
phones was essentially flat, declining 0.2% on shipments of more than
1.7 billion units.

“The high-growth smartphone market, though dominated by Samsung and
Apple, still presents ample opportunities for challengers”

In the worldwide smartphone market, vendors shipped 219.4 million units
in 4Q12, which represents 45.5% of all mobile phone shipments, the
highest percentage ever. The 36.4% year-over-year growth was slightly
below IDC’s forecast of 39.5% for the quarter. On an annual basis, 545.2
million smartphones were shipped globally in 2012, which was 10.1% more
than in 2011.

“The high-growth smartphone market, though dominated by Samsung and
Apple, still presents ample opportunities for challengers,” said Kevin Restivo, senior research analyst with IDC’s Worldwide Quarterly Mobile Phone Tracker. “Vendors with unique market
advantages, such as lower-cost devices, can rapidly gain market share,
especially in emerging markets. A good example is Huawei, which overtook
LG as a Top 5 vendor in the overall mobile phone market and passed HTC
to become a Top 5 smartphone vendor.”

“The fact that Huawei and ZTE now find themselves among the Top 5
smartphone vendors marks a significant shift for the global market,”
noted Ramon Llamas, research manager with IDC’s Mobile Phone team. “Both companies have grown volumes by focusing on the
mass market, but in recent quarters they have turned their attention
toward higher-end devices. In addition, both companies have pushed the
envelope in terms of industrial design with larger displays and smaller
form factors, as well as innovative applications and experiences.”

Smartphone Vendor Highlights

Samsung set a new record for the number of smartphones shipped in
a single quarter and in a single year. Its broad and deep line-up of
Android smartphones, particularly the Galaxy-branded Android family,
combined with sustained demand for its mid-range and entry-level models
to account for the remarkable shipment volumes. 2013 is shaping up to be
a pivotal year for the company as its Tizen smartphone strategy takes
shape. Samsung will continue to rely on Android as its primary operating
system, however, as the move to Tizen will not likely take place
overnight.

Apple‘s record iPhone shipments in the quarter were driven by
successes in Greater China, where shipments more than doubled, as well
as the U.S., where 6.2 million iPhones were activated on Verizon alone.
Interestingly, the company’s success was due in large part to older
models, in particular the iPhone 4, which Apple couldn’t make enough of
in the quarter relative to demand. Its sales success with the older
model could portend success in higher-growth emerging markets where the
company has performed well.

Huawei suddenly finds itself among the top three smartphone
vendors in the world, a first for the company. The company had
previously been a Top 10 vendor. To reach this milestone, Huawei has
courted both the mass market with its simple and inexpensive smartphones
and the high-end of the market with its Ascend-branded product line.
Along the way, the company has demonstrated its innovative skills,
having released the world’s thinnest (6.68 mm) smartphone last year, the
Ascend P1, and this year it announced the upcoming Ascend Mate, the
first smartphone with a 6.1-inch display. At the same time, Huawei has
brought its own software innovations, including Magic Touch, Guiding
Wizard, Smart Reading, and Floating Windows.

Sony‘sstrategy for becoming the worldwide leader in
mobile entertainment combined with its growing portfolio of high-end
smartphones drove its smartphone volumes higher throughout the year.
This marks a significant improvement since Sony acquired Ericsson’s
stake in 2011 in the Sony Ericsson joint venture. Sony introduced its
Xperia TL last quarter and recently announced the addition of the Xperia
Z and the Xperia ZL, to be launched in 1Q13.

ZTE maintained its spot among the Top 5 smartphone vendors
globally thanks to continued international diversification efforts last
quarter. The vendor also shipped more smartphones than feature phones
for the first time. ZTE has grown its smartphone sales of late thanks
primarily to an uptick in lower-cost smartphone sales in many emerging
markets. The company has traditionally relied on sales of phones to
China, where the company is based. Notable progress has been made in
developed markets too.

Top Five Smartphone Vendors, Shipments, and Market Share, 2012 Q4
(Units in Millions)

4Q12 Unit

4Q12 Market

4Q11 Unit

4Q11 Market

Year-over-

Vendor

Shipments

Share

Shipments

Share

Year Change

1. Samsung

63.7

29.0%

36.2

22.5%

76.0%

2. Apple

47.8

21.8%

37.0

23.0%

29.2%

3. Huawei

10.8

4.9%

5.7

3.5%

89.5%

4. Sony

9.8

4.5%

6.3

3.9%

55.6%

5. ZTE

9.5

4.3%

6.4

4.0%

48.4%

Others

77.8

35.5%

69.2

43.1%

12.4%

Total

219.4

100.0%

160.8

100.0%

36.4%

Source: IDC Worldwide Mobile Phone Tracker, January 24, 2013

Note: Data are preliminary and subject to change. Vendor shipments are
branded shipments and exclude OEM sales for all vendors.

In addition to the table above, a graphic showing the relative market
shares of the top 5 smartphone vendors over the previous five quarters
is available at IDC.com. The chart is intended for public use in online
news articles and social media. Instructions on how to embed this
graphic can be found by viewing this
press release on IDC.com.

Top Five Total Mobile Phone Vendors, Shipments, and Market Share,
2012 Q4 (Units in Millions)

4Q12 Unit

4Q12 Market

4Q11 Unit

4Q11 Market

Year-over-

Vendor

Shipments

Share

Shipments

Share

Year Change

1. Samsung

111.2

23.0%

99.0

20.9%

12.3%

2. Nokia

86.3

17.9%

113.4

24.0%

-23.9%

3. Apple

47.8

9.9%

37.0

7.8%

29.2%

4. ZTE

17.6

3.6%

20.6

4.4%

-14.6%

5. Huawei

15.8

3.3%

13.9

2.9%

13.7%

Others

203.8

42.3%

189.5

40.0%

7.5%

Total

482.5

100.0%

473.4

100.0%

1.9%

Source: IDC Worldwide Mobile Phone Tracker, January 24, 2013

Note: Data are preliminary and subject to change. Vendor shipments are
branded shipments and exclude OEM sales for all vendors.

Top Five Smartphone Vendors, Shipments, and Market Share Calendar
Year 2012 (Units in Millions)

FY 2012 Unit

FY 2012Market

FY 2011 Unit

FY 2011Market

Year over

Vendor

Shipments

Share

Shipments

Share

Year Change

1. Samsung

215.8

39.6%

94.2

19.0%

129.1%

2. Apple

136.8

25.1%

93.1

18.8%

46.9%

3. Nokia

35.1

6.4%

77.3

15.6%

-54.6%

4. HTC

32.6

6.0%

43.6

8.8%

-25.2%

5. Research In Motion

32.5

6.0%

51.1

10.3%

-36.4%

Others

92.4

16.9%

136.0

27.5%

-32.1%

Total

545.2

100.0%

495.3

100.0%

10.1%

Source: IDC Worldwide Mobile Phone Tracker, January 24, 2013

Note: Data are preliminary and subject to change. Vendor shipments are
branded shipments and exclude OEM sales for all vendors.

Top Five Mobile Phone Vendors, Shipments, and Market Share Calendar
Year 2012 (Units in Millions)

FY 2012

FY 2012

FY 2011

FY 2011

Shipment

Market

Shipment

Market

Year-over-

Vendor

Volumes

Share

Volumes

Share

Year Change

1. Samsung

406.0

23.7%

330.9

19.3%

22.7%

2. Nokia

335.6

19.6%

416.9

24.3%

-19.5%

3. Apple

136.8

8.0%

93.1

5.4%

46.9%

4. ZTE

65.0

3.8%

69.5

4.1%

-6.5%

5. LG

55.9

3.3%

88.1

5.1%

-36.5%

Others

713.3

41.6%

716.8

41.8%

-0.5%

Total

1712.6

100.0%

1715.3

100.0%

-0.2%

Source: IDC Worldwide Mobile Phone Tracker, January 24, 2013

Note: Data are preliminary and subject to change. Vendor shipments are
branded shipments and exclude OEM sales for all vendors.

About IDC Trackers

IDC Tracker products provide accurate and timely market size, vendor share, and forecasts for hundreds of technology markets from more than 100 countries around the globe. Using proprietary tools and research processes, IDC’s Trackers are updated on a semiannual, quarterly, and monthly basis. Tracker results are delivered to clients in user-friendly excel deliverables and on-line query tools. The IDC Tracker Charts app allows users to view data charts from the most recent IDC Tracker products on their iPhone and iPad.

IDC is the premier global provider of market intelligence, advisory
services, and events for the information technology, telecommunications,
and consumer technology markets. IDC helps IT professionals, business
executives, and the investment community to make fact-based decisions on
technology purchases and business strategy. More than 1,000 IDC analysts
provide global, regional, and local expertise on technology and industry
opportunities and trends in over 110 countries worldwide. For more than
48 years, IDC has provided strategic insights to help our clients
achieve their key business objectives. IDC is a subsidiary of IDG, the
world’s leading technology media, research, and events company. You can
learn more about IDC by visiting www.idc.com.

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of their respective holders.

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